What to do when a tenant does not pay?

Renting flats or houses to outsiders is a common practice on the property market. It is a good way to earn extra income or to cover the upkeep of a home. Unfortunately, renting out does not always turn out to be trouble-free. The most common cause of problems is a lack of payment from the tenant. Is the property owner in this situation doomed to a loss? Find out what to do when a tenant does not pay.

Safe renting

For anyone who rents out a flat to other people, qualities such as regular payments and trust are important. We entrust someone with a home for which we ourselves are responsible. This applies to the condition of the interior as well as to bills. The tenant usually bears the cost of rent and utilities. The payment date for monthly charges should be set in the agreement. Payments are usually made to the property owner's account. Unfortunately, delays sometimes occur, which have an unfavourable effect on the owner's situation. Several rules should be kept in mind in the relationship with the tenant, so that the rental is trouble-free and safe for both parties.

What to do when a tenant does not pay? – advice

The owner must look after their own interests. The tenant should be told that we know about all late payments, and we should react quickly. Steps should be taken swiftly and firmly. There are several channels of communication: a personal visit, emails and phone calls. Direct contact is a last resort, but in some cases it turns out to be the most effective.

By reacting immediately to a late payment, we make our position clear. Under no circumstances should the owner tolerate situations of this kind. The first contact should be made about three days after the payment deadline has passed. In the case of bank transfers, it is enough to ask for confirmation of the transaction. Do not jump to conclusions or react impulsively. The reasons for the delays are not a significant factor for the property owner, since they do not mitigate the situation that has arisen.

In the event of payment delays, communication with the tenant should be documented, so contact by electronic means is advisable. If a demand for payment has no effect, more radical steps must be taken. Under the regulations, as owners we have the option of terminating the rental agreement if the tenant does not cover the amounts due.

WHAT TO REMEMBER WHEN RENTING OUT A PROPERTY?

Terminating the agreement

A rental agreement can be terminated if several conditions are met. Unfortunately, arrears for one month do not give this option. Immediate termination of the agreement is possible when the tenant is in arrears for three full payment periods. The owner is obliged to send the tenant written notice of the intention to terminate the agreement. The letter should set a deadline for settling the obligations. Termination of the agreement is possible if the tenant ignores the set deadline.

Do you need more information about renting out residential premises? Contact our representatives at REMAX Gold in Katowice.